HC Deb 30 January 2004 vol 417 cc568-9W
Mr. Redwood

To ask the Chancellor of the Exchequer what action the Government is planning to improve labour productivity levels. [151478]

John Healey

The Government are committed to raising the rate of UK productivity growth over the economic cycle, improving competitiveness and narrowing the productivity gap with the US, France and Germany. The Government's approach to raising productivity is set out in "Productivity in the UK: The Evidence and the Government's Approach", which was published alongside the 2000 pre-Budget Report.

The Government reports on steps to increase productivity in every Budget and pre-Budget Report. Recent key steps include the introduction of the Enterprise Act 2002, the introduction of R&D tax credits, the reduction of corporation tax rates, implementation of major reforms to capital gains tax, proposals for new Enterprise Capital Funds to increase venture capital investment for small businesses with high-growth potential, increased investment to raise standards in education and to improve adult skills, and a comprehensive review of capital markets through the Myners, Sandler and Higgs reviews.